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The Actual Mrs. Fields Franchise Cost
With an annual revenue of $10 – $100 million, A Mrs. Fields franchise is a sound business choice. Here’s what you need to know if you want to get one.
The Company
The year 1981 saw the beginnings of one of the largest retailers of freshly baked cookies in the US. They started franchising the following year. Today, its franchise system spans over 300 locations throughout the US and 22 other countries and operates from their headquarters in Broomfield, Colorado. Their products now include brownies, muffins, cakes, croissants, bagels, cinnamon rolls, sticky buns, chocolate, and a variety of beverages.
The Franchise
The Mrs. Fields franchise is offered in two different formats—the cookie store and the kiosk. Those applying for a franchise must undergo training, which can include in-store, on-the-job, classroom, and computer-based training. Direct participation of the franchisee in the store operations is highly encouraged by the company. It is not obligatory, but they require the franchisee to hire a full-time manager to work on the premise if managing the store themselves is unlikely.
The initial franchise term is ten years, starting from the day the franchise agreement is finalized. It is renewable to another ten years subject to the company’s terms and conditions.
The Mrs. Fields Franchise Cost
To be eligible for a franchise, you must have a net worth of around $250,000 to $1,000,000 and a liquid capital of about $70,000 to $100,000. Here’s a breakdown of the Mrs. Fields franchise cost:
Your Investment
This is the estimated initial investment for a Mrs. Fields Cookies Store:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Travel and Living Expenses While Training | $2,000 | $3,000 |
| Real Estate Lease | Varies | |
| Improvements and Equipment | $179,495 | $312,500 |
| Opening Product and Soft Goods Inventory | $1,000 | $5,000 |
| Grand Opening Promotion | $5,000 | $10,000 |
| Security Deposits, Utility Deposits, Business Licenses, and Other Deposits and Prepaid Expenses | $4,000 | $5,000 |
| Professional Fees | $9,000 | $10,000 |
| Insurance (3 months) | $2,500 | $3,500 |
| Coffee Preparation and Serving Equipment | $2,500 | $10,000 |
| Computer Hardware and Software | $3,500 | $4,500 |
| Additional Funds (first 3 months) | $8,000 | $12,000 |
| ESTIMATED TOTAL (not including real estate lease costs) | $251,995 | $410,500 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty Fees | 6% of Gross Revenue. |
| Marketing Fees | 3% of Gross Revenue. |
| Training Fee | None currently, but may be charged in the future. |
| Refresher/Additional Training | Then-current fees – currently estimated at $500 per day per person plus travel expenses. |
| Special Assistance | Daily fees and charges the franchisor establishes – currently estimated at $500 per day per person plus travel costs. |
| Late Payment Fee | $100 for each delinquent payment. |
| Late Reporting Fee | $100 for each delinquent report. |
| Late Fee for Failure to Open the Store | $200 per week. |
| Interest Expenses | A rate equal to the lesser of the highest rate allowed under applicable law or 1.5% per month. |
| Audit | Cost of financial audit plus interest at a rate equal to the lesser of the highest rate allowed under applicable law or 1.5% per month. |
| Transfer Fee | $10,000 |
| Renewal Fee | $2,000 |
| Interim Management Fees | 10% of Gross Revenues during the period of management. |
| Costs and Attorney’s Fees; Indemnification | Will vary under circumstances. |
| Lost Revenue Damages | Will vary under the circumstance. |
Did You Know?
Here are some fun facts about Mrs. Fields Cookies:
- Did you know that in 2007, Mrs. Fields baked over ten million chocolate chip cookies? That’s like baking a single cookie for every resident of South Carolina and Tennessee states combined!
- Did you know that Mrs. Fields uses more than 17 tons of frosting? That’s more than enough frosting to fill an Olympic size swimming pool!
- Did you know that when Mrs. Fields bake brownies, people from as far away as 100 yards from their bakery can still detect the mouth-watering aroma? That’s as far-reaching as an entire football field!
- Did you know that Mrs. Fields hand-tied over 200,000 bows in 2007 for their gourmet gifts? That’s a bow every three minutes for a whole year!
Read more about other franchise information here at Franchise How!